9911796707
TMI Blog1972 (9) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... is is a petition under article 226 of the Constitution arising out of a proceeding for search and seizure of the account books of the petitioner under section 132 of the Income-tax Act, 1961. At the outset we are constrained to say that this case like some other cases of this nature which have come to our notice reveals a sorry state of affairs. The income-tax department seems to be labouring under a misconception with regard to the scope of section 132 and the powers of the authorities concerned. The petitioner is a private limited company which is engaged in the business of transport at Kanpur. On May 8, 1969, the income-tax department carried out a raid at the business premises of the petitioner-company as well as the residential pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 969, and August 28, 1969, in the matter of inspection of search warrants, etc., and the return of the seized books, etc. 2. I am directed to inform you that in the absence of any provision for the inspection of documents mentioned in your application dated August 21, 1969, your request cannot be acceded to. The search warrants were duly shown at the time of search. 3. As for the request for the return of the seized books, etc., the same are under scrutiny and would be returned thereafter." The second respondent, the Income-tax Officer, Companies Circle, B-Ward, Kanpur, had also impounded certain documents of the petitioner on May 6, 1971, under section 131 of the Act. Some more documents were impounded on October 15, 1971. When these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that there was no provision permitting the inspection of the documents. This approach of the Commissioner is obviously erroneous. Unless there is a statutory prohibition, a person against whom action is being taken under section 132 is entitled to inspect the record of the proceedings and to obtain copies of the orders passed in those proceedings. If such a right is denied to him, he will not be able to satisfy himself that the action against him is justified and to seek redress against any illegal action taken or order passed. It is a well-known maxim that " justice not only should be done, but should be seem to have been done ". An aggrieved person is entitled to know that the requirements of the law have been complied with. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d thus be illegal. The initial seizure of books of accounts being illegal, their retention would also be illegal. Now, coming to the documents which have been impounded by the Income-tax Officer, we have been informed by the learned standing counsel that those documents have since been returned to the assessee. In the circumstances, it is not necessary to deal with the contention that the impounding and the subsequent retention of the documents was illegal. Since the petition succeeds on the first ground, it is not necessary to deal with the remaining two grounds. For the reasons stated above, we allow this petition. The respondents are directed to return to the petitioner forthwith the books of accounts and documents seized during the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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